Completion of 31st Supplementary Offshore
19 September 2019
Jersey Oil and Gas plc
("Jersey Oil & Gas", "JOG" or the "Company")
Completion of 31st Supplementary Offshore (Greater Buchan Area)
Licensing Round Awards
Jersey Oil & Gas (AIM: JOG), an independent upstream oil and gas company focused on the UK Continental Shelf ("UKCS") region of the North Sea, is pleased to announce formal completion of the requisite documentation in respect of the previously announced blocks awarded to the Company in the Oil & Gas Authority's ("OGA") 31st Supplementary Offshore Licensing Round (the "31 SLR").
The Greater Buchan Area ("GBA") acreage awarded to JOG comprises:
· Licence P2497, Block 20/4c, referred to by JOG as "Zermatt"
· Licence P2498, Blocks 20/5a and 21/1a, referred to by JOG as the "Buchan Blocks", which includes the Buchan oil field and the J2 oil discovery
· Licence P2499, Block 21/2a, referred to by JOG as "Glenn"
Further information on the awards is set out in JOG's announcements of 22 July 2019 and 23 August 2019. Details of the awards can also be found on the Company's website, www.jerseyoilandgas.com, along with an updated corporate presentation.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"We are very pleased to have now formally completed our recently announced block awards in the 31 SLR. These awards have leapfrogged JOG from being an exploration focused business into an Operator of a major new area hub development project, with estimated discovered mean recoverable resources net to JOG of in excess of 120 million barrels of oil equivalent ("mmboe"), together with significant upside potential to tie in further resources within the GBA. This represents a very exciting new chapter for JOG and we look forward to working with all our stakeholders as we progress the Field Development Plan ("FDP") for this transformational project."
Jersey Oil and Gas plc
Andrew Benitz, CEO
Tel: 020 3757 4983
Strand Hanson Limited
Tel: 020 7409 3494
Arden Partners plc
Tel: 020 7614 5900
BMO Capital Markets Limited
Tel: 020 7236 1010
Tel: 020 3757 4983
Qualified Person's Statement:
The information contained in this announcement has been reviewed and approved by Ronald Lansdell, Chief Operating Officer of Jersey Oil & Gas, a qualified Geologist and Fellow of the Geological Society, who has over 40 years' relevant experience within the sector.
Notes to Editors:
Jersey Oil & Gas is a UK E&P company focused on building an upstream oil and gas business in the North Sea. The Company holds a significant acreage position within the Central North Sea referred to as the Greater Buchan Area, which includes Operatorship and 100% working interests in blocks that contain the Buchan oil field and J2 and Glenn oil discoveries, as well as an 18% working interest in the P2170 licence, Blocks 20/5b & 21/1d, operated by Equinor UK Limited ("Equinor") that contains the Verbier oil discovery. In July 2019, the Company granted Equinor a three month option over a 50% equity interest in respect of Blocks 20/5a and 21/1a (the "Buchan Blocks"), which contain the Buchan oil field and J2 oil discovery. Should the option be exercised, Equinor will reimburse JOG for its 50% share of costs in relation to the licence applications.
JOG's acreage is estimated to contain more than 120 million barrels of oil equivalent ("mmboe") of discovered mean recoverable resources net to JOG, in addition to significant exploration upside potential. JOG is currently progressing the appraise and select phases of a Field Development Plan ("FDP") for the Greater Buchan Area, with first oil, subject to funding, targeted for 2024.
The Company plans to build an upstream E&P portfolio via both organic development and potential acquisitions coinciding with the cyclical recovery in the oil price and the opportune buying market in the North Sea. The Company is involved in the identification and evaluation of multiple acquisition opportunities and intends to draw on its management team's considerable experience, knowledge and expertise to deliver shareholder value from its stated growth strategy.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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